HK Shares End Lower As Tech Offsets Energy Gains

Hong Kong's Hang Seng Index finished near its lowest point of the day following choppy trade on Tuesday, despite the broader region tracking Wall Street to post gains.

The local benchmark opened 86 points higher, as investors digested the US Federal Reserve's more hawkish signals on scaling back its easing programme.

But the index failed to hold on to its gains in the afternoon and closed down 179 points, or 0.6 percent, at 28,309.

Market turnover was HK$141.4 billion.

Energy stocks rallied as demand optimism briefly pushed oil prices above US$75.

PetroChina surged 5.8 percent to become the top blue-chip performer, while Hong Kong and China Gas Company jumped 3.7 percent and Sinopec put on 3.5 percent. CNOOC advanced 2.8 percent.

HSBC edged up 0.4 percent following reports that the British bank is restructuring its investment banking operations in the US.

But the gains were overshadowed by a slide by tech shares.

Heavyweight Tencent lost 2.9 percent, Xiaomi slumped 3.2 percent, Meituan declined three percent, and Alibaba shed 1.2 percent.

Casino operators also underperformed – Galaxy Entertainment slid 3.2 percent while Sands China retreated 2.7 percent.

The biggest loser on the benchmark was carmaker BYD Company, which tumbled 4 percent.

Across the border, markets were lifted by banking and energy stocks.

The Shanghai Composite Index added 0.8 percent, while the blue-chip CSI300 index put on 0.6 percent. The Shenzhen Composite rose 0.5 percent.

Shares elsewhere in the region were mostly higher ahead of US Fed chair Jerome Powell's testimony to Congress.

The Nikkei in Japan soared 3.1 percent – its biggest gains in a year thanks to a rally by shipping companies after Mitsui OSK Lines raised its profit forecast.

Elsewhere, Seoul's Kospi rose 0.7 percent, Australian shares gained 1.5 percent, and Taiwan inched up just under 0.1 percent. But Singapore was down slightly.